Bank of Nova Scotia Buys New Position in DexCom, Inc. $DXCM

Key Points

• Bank of Nova Scotia acquired 1.27 million DexCom shares in the second quarter, valued at approximately $85.3 million and representing a 0.34% stake. Institutional investors collectively own 97.75% of the company.
• DexCom reported quarterly earnings of $0.70 per share, exceeding the $0.61 consensus estimate, while revenue rose 13.1% year over year to $1.31 billion.
• Wall Street maintains a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $88.71, though some analysts have recently lowered their targets.

Bank of Nova Scotia bought a new position in shares of DexCom, Inc. (NASDAQ:DXCM - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 1,266,285 shares of the medical device company's stock, valued at approximately $85,284,000. Bank of Nova Scotia owned 0.34% of DexCom at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the business. Geode Capital Management LLC raised its stake in DexCom by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 11,006,183 shares of the medical device company's stock worth $727,842,000 after buying an additional 42,411 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of DexCom by 6.9% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,999,057 shares of the medical device company's stock worth $530,897,000 after purchasing an additional 516,526 shares in the last quarter. Norges Bank bought a new position in shares of DexCom in the 4th quarter worth $483,356,000. Invesco Ltd. lifted its holdings in shares of DexCom by 14.8% in the 4th quarter. Invesco Ltd. now owns 5,315,367 shares of the medical device company's stock worth $352,781,000 after purchasing an additional 686,228 shares in the last quarter. Finally, CIBC Private Wealth Group LLC grew its position in DexCom by 7.6% in the 4th quarter. CIBC Private Wealth Group LLC now owns 3,128,114 shares of the medical device company's stock valued at $207,613,000 after purchasing an additional 220,313 shares during the period. 97.75% of the stock is currently owned by institutional investors.

DexCom Stock Performance

Shares of DXCM opened at $92.34 on Friday. The stock has a 50 day moving average of $77.49 and a 200 day moving average of $70.94. The company has a market capitalization of $34.85 billion, a price-to-earnings ratio of 36.50, a PEG ratio of 1.56 and a beta of 1.41. DexCom, Inc. has a 12 month low of $54.11 and a 12 month high of $92.56. The company has a current ratio of 1.73, a quick ratio of 1.43 and a debt-to-equity ratio of 0.47.

DexCom (NASDAQ:DXCM - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The medical device company reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.09. DexCom had a return on equity of 35.94% and a net margin of 20.12%.The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same quarter in the previous year, the firm earned $0.48 earnings per share. The business's revenue was up 13.1% on a year-over-year basis. As a group, sell-side analysts forecast that DexCom, Inc. will post 2.64 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have commented on DXCM shares. Bank of America decreased their price target on shares of DexCom from $100.00 to $80.00 and set a "buy" rating for the company in a research note on Monday, May 18th. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $94.00 price objective on shares of DexCom in a research note on Friday, July 31st. Barclays reiterated an "underweight" rating and set a $64.00 price objective (down from $67.00) on shares of DexCom in a report on Monday, May 18th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of DexCom in a research report on Tuesday, June 23rd. They set a "buy" rating and a $86.00 target price for the company. Finally, Truist Financial set a $93.00 target price on shares of DexCom and gave the stock a "buy" rating in a report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, DexCom has a consensus rating of "Moderate Buy" and a consensus price target of $88.71.

Insider Activity at DexCom

In other DexCom news, Director Mark G. Foletta sold 4,000 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $74.13, for a total value of $296,520.00. Following the transaction, the director directly owned 52,852 shares in the company, valued at $3,917,918.76. The trade was a 7.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Jon Brown sold 1,700 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $75.55, for a total transaction of $128,435.00. Following the completion of the transaction, the executive vice president owned 106,353 shares in the company, valued at approximately $8,034,969.15. The trade was a 1.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 73,035 shares of company stock valued at $5,446,673 over the last quarter. Corporate insiders own 0.28% of the company's stock.

DexCom Profile

DexCom, Inc is a medical device company that develops, manufactures and distributes continuous glucose monitoring (CGM) systems for people with diabetes. Its products are designed to provide near real-time glucose readings, trend information and alerts to help patients and clinicians manage insulin dosing and reduce hypoglycemia and hyperglycemia. The company's offerings combine wearable glucose sensors, wireless transmitters and software applications that deliver data to smartphones, dedicated receivers and cloud-based platforms for remote monitoring.

Founded in 1999 and headquartered in San Diego, California, DexCom has focused its business on advancing CGM technology and expanding clinical use beyond traditional insulin-dependent populations.

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